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Loreto Inc. has the following financial ratios: asset turnover = 1.60; net profit margin (i.e., net income/sales) = 5%, payout ratio = 40%; equity/assets =

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Loreto Inc. has the following financial ratios: asset turnover = 1.60; net profit margin (i.e., net income/sales) = 5%, payout ratio = 40%; equity/assets = 0.40. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) a. % Sustainable growth rate Internal growth rate b. %

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